Autor Cointelegraph By William Suberg

Bitcoin (BTC) hit three-day lows into the July 10 weekly close as $21,000 gave way as short-term support.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewTrader eyes bullish divergences across marketsData from Cointelegraph Markets Pro and TradingView showed BTC/USD giving up some of its gains from earlier in the week while still looking to cap its best weekly gains since March.The pair circled $20,850 at the time of writing, around $1,600 below the week’s peak at the 200-week moving average.Despite no continuation of the breakout, Bitcoin gave some commentators cause for cautious optimism ahead of the new week beginning.“The markets are showing higher timeframe bullish divergences and the sentiment is the same as on a funeral,” Cointelegraph contributor Michaël van de Poppe summarized.“A recipe for a reversal is there, and it can accelerate quite fast. Invest when nobody is interested. Sell when everyone is interested.”Popular trader Crypto Tony meanwhile entertained the idea of a new sideways phase entering before a deeper drop, something which he imagined “would drive everyone crazy.”$BTC / $USD – Playing with ideasIf we start to reject harder and fail to reclaim the range high, we may start to see something like this shape up. Would drive everyone crazy i can imagine pic.twitter.com/wwoa8vjMRv— Crypto Tony (@CryptoTony__) July 10, 2022Macro conditions remained uncertain, with upheaval in Sri Lanka adding to a sense of nervousness engendered by the common global theme of energy, food and financial crisis.All this crazy shit happening in the world, I just can’t see how anyone can be macro bullishwe need new buyers and retail, without that there is no continuation… only chopall pumps are an opportunity to exit and buy lower$BTC pic.twitter.com/npAKi1L8uw— Ninja (@Ninjascalp) July 10, 2022

Attention focused on the U.S. dollar Index (DXY), which had ended the week back on support after spiking to fresh highs not seen in twenty years.U.S. dollar Index (DXY) 1-hour candle chart. Source: TradingViewRisk Reserve hits all-time lowsThose seeking a golden buying opportunity on BTC meanwhile got a fresh key signal from the Reserve Risk indicator.Related: Bitcoin ‘cheap’ at $20K as BTC price to wallet ratio mimics 2013As noted by commentator Murad over the weekend, Reserve Risk, which shows long-term holder sentiment, hit its lowest-ever levels at July’s prices.”Either this indicator is broken or we are in the high timeframe bottoming zone,” he said in part of Twitter comments alongside data from on-chain analytics firm Glassnode. “I lean towards the latter.”Bicoin Risk Reserve vs. BTC/USD chart. Source: @MustStopMurad/ TwitterReserve Risk, as Cointelegraph reported, has been rediscovering its green “buy” zone since March, this corresponding to optimal chances to invest with “outsized returns” as a result.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin (BTC) said “no” to volatility for a third day on July 7 as Wall Street trading began with little change in mood.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewNext move “likely sets direction going forward”Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it fluctuated just north of $20,000, retaining a pattern characteristic of the week so far.The pair stayed well within a defined range overnight, leading analysts to assume that a break up or down was next as a short-term prospect.“Bitcoin strong consolidation at $20k, this can’t go on forever, triangle primed to break to upside or downside. But RSI bullish divergence tho,” Venturefounder, a contributor to on-chain analytics platform CryptoQuant, told Twitter followers July 6. “BTC going above $21,700 makes a higher high, going below $18,800 makes a lower low, the next move likely sets the direction forward.”Bullish signals on Bitcoin’s relative strength index (RSI) referred to be Venturefounder often precede BTC price followthrough, making the current RSI chart a key reference point on low timeframes.Confirming the likelihood for volatility to return, meanwhile, Bollinger bands on the daily chart stayed narrow — a classic prelude to a trend taking shape.BTC/USD 1-day candle chart (Bitstamp) with RSI, Bollinger bands. Source: TradingViewRegarding what direction that trend could take, all bets remained off on the day as caution summarized sentiment.“Still not convinced with this type of price action,” crypto trader Ninja commented. “below $20.6k is distribution imo, and any pumps shall be faded… the nuke is not over.”Ninja additionally noted that short interest was building on exchange platform Bybit on the day, advising a hands-off approach until those positions unwound.Calm before the CPI stormOn macro markets, the U.S. opened to modest gains, with the S&P 500 and Nasdaq Composite Index up 1% and 1.3% respectively within the first 30 minutes.Related: Bitcoin bulls may have to wait until 2024 for next BTC price ‘rocket stage’A week before May’s Consumer Price Index (CPI) data release, markets remained free of turbulence over inflation signals, in turn keeping additional headwinds from impacting crypto asset performance.With opinions still mixed over how U.S. economic policy will change through 2023, trader Crypto Tony acknowledged that a true return to form for Bitcoin and altcoins may take longer than many realize.“Personally on my worse case scenario update i do not think we see the start of the next impulse until later next year and a new bull run peak until 2024 – 2025,” he tweeted on the day. “I am already positioned at 22-24k and will add if we drop to 17 – 15k.”Earlier, meanwhile, Cointelegraph reported on one trader’s theory that Bitcoin will confirm where the latest macro bottom is by July 15.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.